Economic Stability at Stake: Experts Defend Fed Governor's Independence

A bipartisan coalition, including former Federal Reserve chairs and Treasury secretaries, has urged the Supreme Court to prevent an attempt by President Donald Trump to dismiss Federal Reserve governor Lisa Cook. The former officials emphasize that such a move could jeopardize the central bank's independence and lead to negative economic consequences.

In a detailed legal filing, 18 leading economists highlighted the importance of a free-from-political-influences Federal Reserve, stating that its independence is critical in maintaining low inflation and confidence in the US dollar's stability. Presidents from both parties have respected this independence for over a century.

At the heart of this dispute are allegations of mortgage fraud against Lisa Cook, charges she has denied. While two federal courts have sided with Cook, the Trump administration argues the accusations justify her dismissal, appointing the Supreme Court as the next arbiter in this contentious case.

(With inputs from agencies.)